Steps on how to start a handyman business and why to follow them.
Before you start a handyman business, you should make sure that you want to do this. There are numerous benefits associated with creating this type of business, including low overhead expenses, the ability to choose your hours, potentially low startup costs (if you already have tools), specialisation opportunities, and franchise opportunities.
Is starting a handyman business a good idea?
While there are benefits, you should also be aware of the potential challenges you will face when starting a handyman business, such as the need for thorough knowledge, good tools, time management, and experience. You should also know the legal requirements like licensing and liability insurance.
There is also the risk of failure. Consider that of all new businesses, 20% fail within the first two years, 45% fail within the first five, and 65% within the first 10. By 15 years, only 25% remain. These figures have been relatively consistent for three decades. To give you an idea of the competition, the bureau of labour statistics reported 774,725 new businesses that people started in the year before March 2019. Of course, that figure is for all small businesses.
Even with those challenges, it can be an excellent idea to open a handyman business, especially if you take the right steps to set yourself up for success.
Even more importantly, the handyman market is growing. The following chart shows the market growth in recent years for just the sub-segment of handyman franchise businesses.
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You likely will not need to have a licence for the smallest repairs, but there may be restrictions on advertising or other aspects. Pay attention to requirements like business insurance, licensing requirements for a business licence, and liability insurance.
This website has a list of the licensing requirements state by state as of June 2020 to help you get started. You will notice dramatic variations between states.
3. Determine your ideal customer for your handyman business.
Next, take the time to think about what type of customers you want to attract. This vision will help you decide on things such as services and pricing. Considerations for customers include their:
- Project budget – do they prioritise low prices, or are they willing to pay more for high-quality work?
- Location – how large will your service area be?
- Property – will they own commercial or residential property? Will it be homes or apartments?
Carefully choosing your ideal customer is key to your success but to your happiness as a handyman.
4. Determine what sets you apart from the competition.
With so many handyman businesses, you will need something that sets you apart or a significant selling point. It can be offering a unique service or specialisation, having free or low-cost estimates, having a quick turnaround time, prioritising customer service, or anything else.
Ideally, the thing that sets you apart will be something that your ideal customer needs.
At this point, you can think about a relevant business name.
5. Determine your handyman business pricing.
Figuring out your pricing can be challenging, but this is an essential part of your business. You want prices that are low enough to attract clients yet high enough to make your business profitable. The best option here is to look at competitors in your market to see what clients are willing to pay.
6. Create a marketing plan and know how to find customers for your handyman business.
The tools you need will depend on your specialty or niche but will typically include:
- Toolbox with a lock
- Cordless drill
- Cordless circular saw
- Hammer
- Tape measure
- Screwdrivers
- Tall ladder
- Level
- Wrench
- Pliers
- Utility knife
- Safety gear
8. Use digital tools to your advantage when starting a handyman business.
You do not have to do everything from scratch when starting a business, as part of learning how to start a handyman business is using tools to your advantage. Podium is the perfect example of this, as it helps you with some of the above steps. Podium reviews can help you gain reviews to boost online visibility. Podium webchat lets you directly talk to customers who visit your website with ease, no matter where you are. Inbox makes it easier to communicate with clients and partners from anywhere. Podium is even helping small business owners by letting you try out all its major products for free with podium starter.
Conclusion: why you need to know how to start a handyman business
With the above steps on starting a handyman business, you should have an increased chance of success. Remember that knowing what to expect and creating a business plan will help you avoid potential issues, improving your abilities to stand out, and make your business last.
